Exam 32: Agency Formation and Duties

Jewelry & Coin Company hires Kelly Ann to buy gems and precious metals from various sources on its behalf. In this relationship, Jewelry & Coin is

If work is usually done under the employer's direction, this indicates independent-contractor status.

An agency by estoppel arises when the principal's actins have created the appearance of an agency that does not in fact exist.

Lorena is appointed as an agent for Milled Grains, Inc. The agency agree?ment is silent as to the level of sales that Lorena is expected to achieve. She must

Global Games Corporation employs Hyacinth as an agent. Global Games gives her an exclusive territory in which to sell its products. Global Games cannot compete with her in that territory under the duty of

Generally, the law assumes that the principal is aware of any information acquired by the agent that is relevant to the agency.

Fact Pattern 32-1B (Questions B4-B6 apply) Margo works as an administrator and receptionist in Neon's Garage Door Store. Neon withholds federal taxes from Margo's pay, and controls the methods and details of the performance of her work. Margo is not au?thorized to modify the prices or other terms of a sale at the store. Omar installs Neon's Garage Door products at the buyers' locations. -Refer to Fact Pattern 32-1B. Neon hires Professional Janitorial Company to clean the store. Neon gives Professional Janitorial instructions as to what needs to be cleaned and when. Professional Janitorial is

Anything that an agent obtains by virtue of the employment or agency relationship is his or hers to keep.

Employers can avoid certain tax liabilities by hiring independent contractors instead of employees.

Fact Pattern 32-1B (Questions B4-B6 apply) Margo works as an administrator and receptionist in Neon's Garage Door Store. Neon withholds federal taxes from Margo's pay, and controls the methods and details of the performance of her work. Margo is not au?thorized to modify the prices or other terms of a sale at the store. Omar installs Neon's Garage Door products at the buyers' locations. -Refer to Fact Pattern 32-1B. Neon authorizes Omar to sell garage door upgrades and accessories at the buyers' lo?cations at prices that Omar negotiates with those buyers. With respect to sales at those locations, Omar is

Bernard is an expert on exotic flowers. Custom Floral Arrangements, Inc., hires Bernard to order exotic flowers for its arrangements. Bernard does not examine the quality of the flowers he orders on behalf of Custom Floral. Bernard has breached

A familiar example of an agent is the owner of a corporation.

Home Enterprises employs Itzak to buy property for a possible residential development. Itzak secretly buys some of the property and sells it to Home Enterprises at a profit. Itzak has breached

A person must have contractual capacity to be an agent.

Fact Pattern 32-1B (Questions B4-B6 apply) Margo works as an administrator and receptionist in Neon's Garage Door Store. Neon withholds federal taxes from Margo's pay, and controls the methods and details of the performance of her work. Margo is not au?thorized to modify the prices or other terms of a sale at the store. Omar installs Neon's Garage Door products at the buyers' locations. -Refer to Fact Pattern 32-1B. At the shop, Margo is

The term fiduciary is at the heart of agency law.

California Produce Company hires Drew to work on California Produce's shipping dock, checking outgoing loads and dispatching the company's drivers. With respect to California Produce, Drew is most likely

Any copyrighted work created by an employee within the scope of his or her employment at the request of the employer is a "work for hire."

The agent has the right to be compensated, to be reimbursed and indemnified, and to have a safe working environment.

Ratification involves a question of intent, and intent can be expressed only by words.